ICICI

BANK
e-Finance for Development
- An Indian Perspective

TABLE OF CONTENTS
INTRODUCTION
OBJECTIVE
ACQUISITION
FUNCTIONAL

ACTIVITIES
OPERATIONAL ACTIVITIES
PROMOTIONAL ACTIVITIES
RECOGNITION
BANKING SEGMENTS
SUBSIDERIES
STRATEGIC FRAMEWORK
ONLINE PRODUCTS
KEY TRENDS & FORCES

ICICI-An Introduction
Industrial Credit and Investment
Corporation of India,
It is a major banking & financial services
organisation in India formed in 1954
It is the second largest bank in India
It is the largest private sector bank in India

OBJECTIVE

In 1954, ICICI Ltd was incorporated at the

initiatives of world bank , Govt of India &
representatives of Indian Industry with the
objective of creating a development financial
Institution for providing medium term & long
term project financing for Indian Business.

ACQUISITION
2005 - Investitsionno-Kreditny Bank (IKB), a
Russian bank
2007 - Sangli Bank , Maharashtra State
23 May - Bank of Rajasthan

FUNCTIONAL ACTIVITIES
Its shares are listed on the stock exchanges at BSE,
NSE, Kolkata & Vadodara
ICICI Bank undertake normal banking operations
taking deposits, credit cards, car loans etc

OPERATIONAL ACTIVITIES
The bank has a network of 2016 branches (as on
31st mar 2010) & 5219 ATMs in India & presence
in 18 countries
On 23 may 2010, ICICI Bank announced that it
will merge with Bank of Rajasthan through a share
swap in a non cash deal that values the Bank of
Rajasthan at about Rs 3000 crore. ICICI
announced that the merger expand ICICI Banks
branch network by 25%

PROMOTIONAL ACTIVITIES
It is the largest issuer of credit cards in India
It is one of the big four banks of India, along with
SBI, PNB & Canara Bank- its main competitors

RECOGNITION
The Brand Trust Report , launched in 2011, has
ranked ICICI in the 15th place as the most trusted
brand of India.
ICICI Bank is one of the Big Four Banks of India,
along with State Bank of India, Punjab National
Bank Bank of India and Canara Bank its main
competitors

BANKING SEGMENTS
Retail Banks -> 58% of revenue
Small Enterprises -> 8% of revenue
Corporate Banks & Project Finance -> 13% of
revenue
International Banks -> 21% of revenue

SUBSIDERIES
On 18th oct 2010 ICICI inaugurated
I-Express, an instant cross-border money transfer
option for NRIs
ICICI Lombard GIC Ltd -> Largest private sector
general Insurance Company in India.
ICICI Prudential -> It was the amung the first
private sector life insurance companies to begin
operations in December 2000 after approval of
IRDA

ICICI
Lombard
ICICI Lombard GIC Ltd
Type
Industry
Founded
Headquarters
Key people
Products
Net income
Employees
Parent
Website

Public Listed Company

Insurance
2001
Mumbai, India
Bhargav Dasgupta, MD
General insurance
144 crore (US$31.25 million)
4634 (as March 2010)
ICICI Bank, Fairfax Financial
ICICI Lombard

ICICI Lombard
ICICI Lombard GIC Ltd. is the largest private sector general
insurance company in India with a Gross Written Premium
(GWP) over 3,694.80 crore (US$801.77 million)as of March
2010.
The company issued over 44 lakh policies and settled over 62
lakh claims and has a claim disposal ratio of 96% of total
reported claims.
ICICI Lombard GIC Ltd. is a 74:26 joint venture between ICICI
Bank Limited, Indias second largest bank and Fairfax
Financial Holdings Limited, a Canada based USD 30 billion
diversified financial services company.
The company has strength of 4,634 employees working in 350
branches across India

Channels
Channel is the term used for the various
approaches a company uses to tap its customers.
ICICI Lombard uses a multi channel approach to
sales, service and other allied activities.
The channels used by ICICI Lombard can be
broadly stated as under:

Buying Insurance Online

ICICI Lombard was among the first companies to
make their insurance products available online in
India. ICICI Lombard has web-based systems to
meet all pre and post-policy transactional needs of
its customers. One can compare plans, get quotes,
buy, renew and keep a track of their insurance
policies online.
ICICI Lombard offers its customers retail general
insurance products online. These products are Car,
Two Wheeler, Health, Travel, Student Travel,
Personal Accident and Home Insurance

Telecalling

ICICI Lombard was the first general insurance

company in India to start telesales operations due
to its inherent profitability.

ICICI Prudential
Type

Private limited company

Industry

Insurance

Headquarters

Mumbai

Key people

Sandeep Bakshi, Managing

Director

Products

Individual and Group

Insurance Plans

Website

Official Website

ICICI PRUDENTIAL - AN INTRODUCTION

ICICI Prudential is the first private sector life insurance
companies to begin operations in December 2000 after
receiving approval from Insurance Regulatory Development
Authority (IRDA).
ICICI Prudential Life's capital stands at Rs. 4,780 crores (as
of September 30, 2010) with ICICI Bank and Prudential plc
holding 74% and 26% stake respectively.
The company has a network of over 1,500 offices and over
1,60,000 advisors, as on September 30, 2010. The company
has assets held over Rs. 65,000 crores as on September 30,

2010

ICICI PRUDENTIAL
In June, 2009 ICICI Prudential Life Insurance has decided to
snap its tie up with TTK Healthcare to settle insurance claims of
its users.
ICICI Prudential's life insurance products may be loosely
categorized under three forms- Health Insurance, Life and
Retirement.
Under the Health Insurance category it offers products like ICICI
Pru Health Saver & ICICI Pru MediAssure.
Under the Retirement Insurance category it offers products like
ICICI Pru Forever Life & ICICI Pru LifeLink Pension.
Under the Life Insurance Category it offers plans like i-Protect
term plan, Pure-Protect and Life Guard.

ICICI Group - Development framework

Product lead approach for each sector

Small and Medium Enterprise (SME)

Agriculture and Micro Finance
Community Banking
Internet and Electronic Banking

Product and delivery technology dependent

Branch remote approach
Central processing centres enable optimum
monitoring

20

SME - Strategic framework

Concerns
Improve Quality
Exit weak accounts
Improve yields
Reprice on RaRoC
benchmark
Reduce delivery cost
Web / call centre
based delivery

Aspirations
Non capital intensive
growth
Liability/ fee income
Cash management
product
Innovative delivery
Smart / Credit cards
Web / call centre
delivery
Service relationships
Banker for services
rather than credit

21

SME - Service & Delivery

Drop box point

Information

High

Logging requests

value cash
transactions
Call centre

Branch

Handles exceptions
Cross sells
Monitors accounts

For

all
transactions
except high
value cash

ATM

Trade finance
factory

Processes all
pure credit
related requests

Account/ Relationship
manager

Customer

Credit factory

Information
Logging

requests
RPC/CPC
Internet

Processes all
trade related
requests for a city

Processing centres*

Provide

support
backbone for
all transaction
requests
Services
doorstep
deliveries

22

Online Products
Bill Junction
Utility bill
payments

Pay Seal
electronic payment
system

Corporate Infinity
online transfer/
settlement system

e-banking in ICICI

ICICI Markets
online FX, Debt,
SME Portal

ICICI Direct and

ICICI Select

Business Multiplier
web interface

23

Agri - Micro-credit initiatives

Innovative structure for micro-credit in rural

areas
Overcome the reach problem
Lower administration costs

Channels for delivering micro-credit

Sugar companies
Seed producers
Input companies
NGOs and micro credit institutions

These channels help build volumes, reduce costs and

monitor credit risk

24

Agri - Farmer Service Centres (FSCs)

FSC provides one stop solution to the farmer

Agri extension support

Inputs and other services
Credit
Market linkage
Rural infrastructure

These FSCs are promoted by Agri Input

suppliers , and avoids duplication of efforts by
different players

25

Smart card solution for FSCs

Input

Merchant
Store

Credit
Debit
e-purse

Bank Account/
Credit History

Farmer Service Center

Output Sale
Collect Money

Online update of Bank accounts

26

Smart Cards An alternative

Difficulty in rural banking

Management of Cash
Cost of idle cash
Cost of cash handling infrastructure

Geographical spreads

Solutions through
Elimination/ reduction of cash handling
Innovation of low cost delivery channels

Smart Card - an ideal vehicle

27

Smart Cards at ICICI

Smart Cards launched in October 2000

Infosys Campus in Bangalore
Manipal Academy of Higher Education (MAHE)

New Initiatives
Satyam Smart Card
HPCL Petro Card
Work on multiple application card - Debit, Credit, EPurse and Loyalty

28

Internet Banking
First Bank in India to launch website - 1996
First Bank in India to launch Internet
Banking - 1997
First Bank in India to launch online bill
payment-1999
Only Bank in India with million online
customers
Monthly average transactions per online
customer- 7

29

Channel Usage

Branch
C ash Transactions
J an-02
18%
Apr-01
19%
Non Cash Transactions
J an-02
41%
Apr-01
50%

A TM

C all C entres

82%
81%
33%
39%

Net

COP S

Nil
Nil
9%
6%

7%
5%

10%
Nil

30

KEY TRENDS & FORCES

Indian Companies increasing commercial
borrowing for both International & domestic
growth a key news for ICICI growth
RBI approval for new branches leads to increase in
low cost deposits
Interest rate fluctuations increase ICICI Bank debt
payments

PRESENTED TO
PRESENTED BY
CLASS
ROLL NO.

MISS

RASHMI
SUMIT TUTEJA
MFC(P)
13

e-enabling the
economy
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